Australian Government Walks Fine Budget Line With RBA Primed to Hike
Kanebridge News
    HOUSE MEDIAN ASKING PRICES AND WEEKLY CHANGE     Sydney $1,692,763 (+1.39%)       Melbourne $1,026,321 (+0.58%)       Brisbane $1,075,782 (+0.61%)       Adelaide $975,673 (+1.16%)       Perth $939,830 (-0.46%)       Hobart $767,281 (+0.12%)       Darwin $772,894 (+3.13%)       Canberra $995,835 (+2.65%)       National $1,102,190 (+1.16%)                UNIT MEDIAN ASKING PRICES AND WEEKLY CHANGE     Sydney $769,314 (-0.77%)       Melbourne $497,623 (-0.57%)       Brisbane $664,130 (-0.83%)       Adelaide $500,856 (-1.62%)       Perth $532,200 (-2.10%)       Hobart $533,165 (-0.86%)       Darwin $386,839 (+0.04%)       Canberra $488,214 (-1.44%)       National $568,780 (-1.03%)                HOUSES FOR SALE AND WEEKLY CHANGE     Sydney 12,369 (-353)       Melbourne 14,131 (-529)       Brisbane 8,333 (-99)       Adelaide 2,953 (-60)       Perth 8,005 (-15)       Hobart 1,269 (-21)       Darwin 162 (-13)       Canberra 1,171 (-24)       National 48,393 (-1,114)                UNITS FOR SALE AND WEEKLY CHANGE     Sydney 9,463 (-139)       Melbourne 7,921 (-85)       Brisbane 1,694 (-13)       Adelaide 447 (+1)       Perth 1,655 (-24)       Hobart 243 (+3)       Darwin 300 (+3)       Canberra 1,185 (+2)       National 22,908 (-252)                HOUSE MEDIAN ASKING RENTS AND WEEKLY CHANGE     Sydney $800 ($0)       Melbourne $590 ($0)       Brisbane $650 ($0)       Adelaide $640 ($0)       Perth $700 ($0)       Hobart $580 (-$5)       Darwin $730 (-$5)       Canberra $700 ($0)       National $681 (-$1)                UNIT MEDIAN ASKING RENTS AND WEEKLY CHANGE     Sydney $750 ($0)       Melbourne $595 (-$5)       Brisbane $650 (+$10)       Adelaide $520 (-$10)       Perth $650 ($0)       Hobart $500 (+$20)       Darwin $615 (+$10)       Canberra $580 (+$10)       National $617 (+$4)                HOUSES FOR RENT AND WEEKLY CHANGE     Sydney 5,703 (-93)       Melbourne 7,643 (+47)       Brisbane 3,854 (-40)       Adelaide 1,395 (-7)       Perth 2,236 (+59)       Hobart 208 (-7)       Darwin 77 (-11)       Canberra 502 (-8)       National 21,618 (-60)                UNITS FOR RENT AND WEEKLY CHANGE     Sydney 7,805 (-17)       Melbourne 5,420 (+97)       Brisbane 1,844 (-67)       Adelaide 377 (-3)       Perth 743 (+21)       Hobart 88 (+9)       Darwin 110 (+11)       Canberra 562 (+24)       National 16,949 (+75)                HOUSE ANNUAL GROSS YIELDS AND TREND         Sydney 2.46% (↓)       Melbourne 2.99% (↓)       Brisbane 3.14% (↓)       Adelaide 3.41% (↓)     Perth 3.87% (↑)        Hobart 3.93% (↓)       Darwin 4.91% (↓)       Canberra 3.66% (↓)       National 3.21% (↓)            UNIT ANNUAL GROSS YIELDS AND TREND       Sydney 5.07% (↑)        Melbourne 6.22% (↓)     Brisbane 5.09% (↑)        Adelaide 5.40% (↓)     Perth 6.35% (↑)      Hobart 4.88% (↑)      Darwin 8.27% (↑)      Canberra 6.18% (↑)      National 5.64% (↑)             HOUSE RENTAL VACANCY RATES AND TREND       Sydney 2.0% (↑)      Melbourne 1.9% (↑)      Brisbane 1.4% (↑)      Adelaide 1.3% (↑)      Perth 1.2% (↑)      Hobart 1.0% (↑)      Darwin 1.6% (↑)      Canberra 2.7% (↑)      National 1.7% (↑)             UNIT RENTAL VACANCY RATES AND TREND       Sydney 2.4% (↑)      Melbourne 3.8% (↑)      Brisbane 2.0% (↑)      Adelaide 1.1% (↑)      Perth 0.9% (↑)      Hobart 1.4% (↑)      Darwin 2.8% (↑)      Canberra 2.9% (↑)      National 2.2% (↑)             AVERAGE DAYS TO SELL HOUSES AND TREND       Sydney 29.4 (↑)      Melbourne 29.0 (↑)      Brisbane 34.0 (↑)      Adelaide 27.7 (↑)      Perth 38.4 (↑)        Hobart 29.4 (↓)       Darwin 25.7 (↓)     Canberra 31.4 (↑)      National 30.6 (↑)             AVERAGE DAYS TO SELL UNITS AND TREND       Sydney 27.6 (↑)      Melbourne 29.4 (↑)      Brisbane 32.7 (↑)      Adelaide 26.2 (↑)      Perth 39.4 (↑)        Hobart 32.2 (↓)       Darwin 36.1 (↓)     Canberra 38.5 (↑)      National 32.8 (↑)            
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Australian Government Walks Fine Budget Line With RBA Primed to Hike

The budget is being framed ahead of a federal election expected to be held in early 2025

By JAMES GLYNN
Sun, May 12, 2024 7:00amGrey Clock 2 min

SYDNEY—Australian Treasurer Jim Chalmers will deliver the government’s 2024-2025 federal budget next Tuesday amid concerns that strong revenue growth will tempt him toward a jump in spending, stoking the case for higher interest rates.

Economists expect Chalmers to announce a budget surplus for 2023-2024, supported in part by high commodity prices and strength in the job market, with unemployment continuing to hover near its lowest level in half a century.

The question on the lips of the governor of the Reserve Bank of Australia, Michele Bullock , will be how much of that revenue will flow back into the economy by things like added measures aimed at easing a cost-of-living surge for consumers.

Bullock told reporters Tuesday that the RBA’s board had considered a further rise in interest rates, sending a shot across the bow of the center-left Labor government ahead of the budget.

The budget is being framed ahead of a federal election expected to be held in early 2025.

The public acknowledgment of the RBA board’s discussion of what would be a 14th interest-rate rise in two years signaled that the central bank has grown more concerned about the inflation outlook after first-quarter data came in above its own expectations.

Economists have warned that the RBA isn’t even close to a decision to cut interest rates, and the more likely outcome at the moment is that the central bank will need to tighten the policy screws further before the end of this year.

“The challenge fiscal policymakers face is that although they are flush with revenue, a cautious approach ought to be taken to additional spending because the economy is still operating at full employment, and inflation is still too high,” said Paul Bloxham, chief economist at HSBC Australia.

“Loosening fiscal policy settings at this point could mean that monetary policy would need to be tightened further yet—or that rates need to be higher for longer,” he added.

The RBA is conscious of the fact that significant income tax cuts will be delivered midyear and that they target low- and middle-income earners, who are more likely to spend added income than save it.

The government has already signalled its plans to spend in the area of subsidies for local manufacturing, including for the production of solar panels.

In addition, the budget will focus on business tax incentives, increased defence spending, funding for domestic violence support, changes to student debt policy and infrastructure.

Chalmers has played down the risk over the budget stoking the flames of inflation.

“It will be a responsible budget, a restrained budget, and it will maintain our focus on that inflation fight,” he said Thursday in a radio interview.

“There will be help for people with the cost of living, but we’ll make sure that that cost-of-living help is part of the solution and not part of the problem when it comes to inflation,” he added.

A risk that the RBA will also be alert to is the probability that the government will hold back some of its revenue gains to support added spending closer to the election.

Josh Williamson , chief economist at Citi Australia, said Chalmers will likely push new spending into the future to avoid overheating the economy now.

“The government does not want to be seen promoting policies that add to the risk of further policy tightening,” he said.

This suggests that new spending will be pushed into the government’s forward budgetary projections, while measures that directly reduce inflation could be announced virtually immediately, Williamson added.



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For self-employed Australians, navigating the mortgage market can be complex—especially when income documentation doesn’t fit the standard mould. In this guide, Stephen Andrianakos, Director of Red Door Financial Group, outlines eight flexible loan structures designed to support business owners, freelancers, and entrepreneurs.

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A full-doc loan is the most straightforward and competitive option for self-employed borrowers with up-to-date tax returns and financials. Lenders assess two years of tax returns, assessment notices, and business financials. This type of loan offers high borrowing capacity, access to features like offset accounts and redraw facilities, and fixed and variable rate choices.

2. Low-Doc Loan
Low-doc loans are designed for borrowers who can’t provide the usual financial documentation, such as those in start-up mode or recently expanded businesses. Instead of full tax returns, lenders accept alternatives like profit and loss statements or accountant’s declarations. While rates may be slightly higher, these loans make finance accessible where banks might otherwise decline.

3. Standard Variable Rate Loan
A standard variable loan moves with the market and offers flexibility in repayments, extra contributions, and redraw options. It’s ideal for borrowers who want to manage repayments actively or pay off their loans faster when income permits. With access to over 40 lenders, brokers can help match borrowers with a variable product suited to their financial strategy.

4. Fixed Rate Loan
A fixed-rate loan offers repayment certainty over a set term—typically one to five years. It’s popular with borrowers seeking predictability, especially in volatile rate environments. While fixed loans offer fewer flexible features, their stability can be valuable for budgeting and cash flow planning.

5. Split Loan
A split loan combines fixed and variable portions, giving borrowers the security of a fixed rate on part of the loan and the flexibility of a variable rate on the other. This structure benefits self-employed clients with irregular income, allowing them to lock in part of their repayment while keeping some funds accessible.

6. Construction Loan
Construction loans release funds in stages aligned with the building process, from the initial slab to completion. These loans suit clients building a new home or undertaking major renovations. Most lenders offer interest-only repayments during construction, switching to principal-and-interest after the build. Managing timelines and approvals is key to a smooth experience.

7. Interest-Only Loan
Interest-only loans allow borrowers to pay just the interest portion of the loan for a set period, preserving cash flow. This structure is often used during growth phases in business or for investment purposes. After the interest-only period, the loan typically converts to principal-and-interest repayments.

8. Offset Home Loan
An offset home loan links your savings account to your mortgage, reducing the interest charged on the loan. For self-employed borrowers with fluctuating income, it’s a valuable tool for managing cash flow while still reducing interest and accelerating loan repayment. The funds remain accessible, offering both flexibility and efficiency.

Red Door Financial Group is a Melbourne-based brokerage firm that offers personalised financial solutions for residential, commercial, and business lending.

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